Google announces agreement with Tencent to expand in China
Google, an Alphabet Inc. company has announced today that they have reached an agreement with Chinese tech giants Tencent. Google announced that both firms are in a long-term patent deal to expand their growth in China where many of Google’s products such as Google search engine, play store, and email services are blocked.
Agreement valued over $500 billion
It is not confirmed by any of the firms involved but there are reports suggesting that this agreement may well be valued over $500 billion.
This isn’t the first time Google has signed a patent agreement with another giant tech company, Google has previously signed with Samsung Electronics, LG Electronics, and Cisco too. But this is the first time Google has come to an agreement with a Chinese giant. The deal covers a broad range of products and technologies with both the firms pledging on working together on future tech and innovations.
How big is Tencent?
Tencent is the biggest tech firm in China with one of their biggest products being, WeChat which has over a billion users, which is China’s biggest social media and payments app. They also have one of China’s most popular App stores and live streaming platform.
So it seems Google has recognized Tencent as the loophole to get in China with all the regulations. Over the past year, Google has come out to say they are looking to increase its presence in the Chinese market. They have also launched a local AI research lab and more. The company in January also announced that it has invested in a Chinese live streaming app Chushou, similar to Youtube.
Google’s head of patents Mike Lee said,
“We’re pleased to enter into a patent cross-licence deal with Tencent. By working together on agreements such as this, tech companies can focus on building better products and services for the end users.”